The ‘IQI’ menu is a core element of Ofgem’s incentive-based approach to regulation. But network companies have outperformed their totex allowances – is this because the IQI is not causing them to reveal their true efficient costs as expected? If so why and what can be done to improve the incentives to reveal efficient costs?
Download CEPA's briefing: MENU REGULATION AND LESSONS FROM RORE
Ben Shafran, an experienced regulatory economist and manager. He has played a key role in the development and implementation of regulatory approaches, including the RIIO framework, that set the benchmark for innovation and transparency while balancing the interests of consumers and investors.